Mortgage loan amount
The amount you receive can be anywhere between INR 20 lac and INR 7.5 crore, depending on the market value of your property and other eligibility factors.
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It is a customised online tool that allows applicants to calculate their monthly loan against property instalment in advance. It helps customers to plan their finances effectively. The calculator uses three variables that are the loan amount, repayment tenure, and rate of interest for computing EMI. All you have to do is, input the variables and get the desired result.
A loan against property (LAP) is another form of secured loan. Self-employed and business owners can avail of this loan after mortgaging their property as collateral. It comes with a lower interest rate because the sanctioned amount is determined based on the valuation of the property. As the collateral is commercial or residential property, customers can obtain a large amount as compared to other loan forms.
LAP helps businesses to expand. It helps you to maintain ownership of your property without having to worry about meeting your financial obligations.
Note: We do not provide Loan Against Property to salaried individuals.
Before applying for a loan against property, applicants must have the following documentation on hand.
Here are the interest rates and fees for a loan against a property with an interest rate starting at 11% per annum.
Please note that these rates are indicative and subject to change. The processing fee and prepayment charges may also vary depending on the lender and the loan terms. It's best to check with the lender directly for the most up-to-date information.
Hero FinCorp provides customers with an option to choose between fixed interest rate and floating interest rate. The interest rate has a direct impact on your EMI amount and repayment tenure.
Fixed Interest Rate - It means you pay the same interest rate throughout your loan repayment tenure. Here, the EMI remains the same during the whole loan tenure.
Floating Interest Rate - This type of interest rate fluctuates in response to market conditions. As the interest rate fluctuates, the EMI also keeps on changing. We calculate the interest rate using a base rate or index rate set by RBI. Therefore, when the base rate increases, the floating rate also increases and vice versa.
Processing Fees - This fee is charged to cover the cost incurred during the processing of your loan.
Legal/Technical Fees - Before providing any funds, we assess the property valuation and the risk involved in the property by collecting all the legal documentation and by physically verifying the property and documents. To initiate this process, you may be charged with the legal fee.
Pre-Payment and Foreclosure Charges
(a) These depend on the type of the interest rate—whether it is floating or fixed interest rate.
(b) There are predefined charges for prepayment and foreclosure of the loan. Read the loan agreement carefully before applying for a LAP.
First, check if you satisfy our loan against property eligibility criteria, based on your age, age of business, and by going through our FAQs.
Then get all the necessary documents like KYC papers, property papers, income proofs like financial statements and ITRs, and company constitution and registration proofs in place.
Use the loan against property EMI calculator on our website to figure out what works best for you.
Fill up the LAP loan application form on our website, by providing details like your name, email ID, mobile number, property location, your city and state, annual turnover, and the loan amount you need. Then hit on Apply Now.
You can also call our customer care on 1800-103-5271, Monday to Friday, between 10 AM and 6 PM. Or, email to Corporate.Care@HeroFinCorp.com.
If you want to take the offline route, just visit your nearest Hero FinCorp branch. If you are an customer, contact your relationship manager.
Stable Income - Lenders prefer borrowers with a steady and reliable income. There are fewer chances of getting a loan against the property if you don't have a stable income or if you earn by speculative means.
Age Factor - As the borrower’s age increases, earning potential decreases. As such, financial institutions are more likely to lend to young people who are starting a job or business than those who are nearing retirement or have retired.
Occupation - Salaried people have a fixed income, unlike businesses or self-employed people, whose earnings fluctuate with market conditions. Considering this risk factor, lenders prefer salaried over non-salaried professionals.
Place of Residence - Loans are not available on agricultural property or land that does not have government approval. As a result, the location of your residence and the property you are willing to mortgage is crucial.
Business / commercial purposes -A loan against property in India can help you expand your business, buy machinery or a new plant, maintain cash flow and working capital, or finance a new project.
Consolidation of debt - LAP loans can help you consolidate several small but high - priced loans into one bigger loan, which is low-priced and has a higher tenure. Your loan amount will also increase.
Lease rent discounting - LRD is the process in which you can use rental receipts from your property as security to get a LAP loan from Hero FinCorp. This way, the money you get as rent will go into paying off the EMIs. Consequently, you will be able to use the loan against commercial property or residential property to buy new properties and get tax deductions.
New commercial property - You can use LAP to buy new commercial property, expand your business, earn more revenue and pay off your loan.
Maintaining and expanding inventory requires sufficient funding and this expense is unavoidable. It is necessary to provide customers with more options and meet changing demands. A mortgage loan can help.
Replacing or repairing old machinery or buying the latest ones requires a lot of money. A loan on property can do the trick and help you handle production or serve customers efficiently. It will also eliminate your risk or liability that comes from using an outdated or faulty equipment.
Unsold inventory or late payments from customers can affect your cash flow negatively. Plus, expenses associated with rent, staff and utilities can add to the worry. By taking a LAP loan, you can ensure smooth operations and cover losses.
When you want to grow or expand your business, funds should not hold you back. Take a loan against property to hire more employees, buy a new place, advertise, or give your business a new look.
Flexibility - In India, one can use various properties as collateral to avail a LAP. They can be of different sizes or values as well.
Types - You can secure this loan using residential, commercial, or a blend of both property types. Options include buildings, land, commercial spaces, factories, shops, and apartments - all acceptable as collateral.
Alternate Assets - You can also provide hospitals, nursing homes, hotels, guest houses, farmhouses, vacant plots, schools or colleges or industrial properties as collateral. The requirement differs from lender to lender.
Property title - The title of the mortgaged property should be clear, marketable and there should not be any loan, litigation, or mortgage on the property itself.
Insurance - The property used as collateral must have insurance against fire and other hazards.
Stable Income - A consistent, dependable income is our preference. Without stable earnings or speculative income, obtaining a loan against property becomes less likely.
Age Factor - Borrower's earning potential tends to decline with age. Hence, we favour lending to young individuals starting their careers over those nearing retirement or already retired.
Occupation - We offer LAP to self-employed professionals and business owners.
Place of Residence - Loans exclude agricultural land or unapproved plots. Thus, your residence and property location are vital for mortgage eligibility.
Switching to a better lender - Benefit from Hero FinCorp's low LAP rates. Transfer your loan for improved terms, excluding prior repayments. Begin by settling the remaining balance.
Better terms - Opt for a balance transfer for reduced loan against property interest, extended tenure, plus the option for a top-up or extra loan.
Tenure flexibility - Modify your tenure even if it was fixed with your previous lender by transferring your balance to us.
Save more - A mere 0.5% lower loan against property interest rate from us can yield significant annual savings for you.
Credit Score Impact - Your credit score shapes your LAP interest rate; lower scores mean higher rates. Maintain a good score for a better mortgage rate.
Loan Duration Impact - LAP extends up to 15 years max, leading to lower interest as tenure grows. Longer LAP duration offers reduced interest rates.
Property type - Property values differ; commercial exceeds residential. Thus, commercial gets lower rates, residential gets higher.
Applicant's Profile - Age, income, occupation, place of residence, and other factors play a role in deciding your LAP interest rate.